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Rental Car Industry Makes Significant Strides in Improving Customer Satisfaction


November 2006
 Filed under: CAR CONSUMER Car News | CAR CONSUMER Headlines

Enterprise Ranks Highest in Satisfying Rental Car Customers for a Third Consecutive Year

WESTLAKE VILLAGE, Calif., Nov. 14 /PRNewswire/ -- Travelers renting cars at airport locations record significantly higher customer satisfaction levels with rental car companies than they did in 2005, according to the J.D. Power and Associates 2006 Rental Car Satisfaction Study(SM) released today.
Now in its 11th year, the study finds that customer satisfaction with rental car companies has improved 23 index points on a 1,000-point scale -- representing a 3 percent improvement from 2005. Improvements are recorded in all six factors used to determine overall satisfaction: costs and fees, pick-up process, rental car, return process, reservation process and shuttle bus/van. Furthermore, all eight companies included in the rankings record year-over-year improvements.

"This has been a good year for the travel industry in terms of customer satisfaction, as each travel-related segment we measure has experienced improvements, including airlines, airports, hotels and now rental cars," said Jim Gaz, senior director of travel and entertainment at J.D. Power and Associates. "However, the rental car industry may face challenges in the future as domestic manufacturers consider pulling back on fleet sales to focus on their more profitable retail sales. This has the potential of leading to higher rental car rates and an aging fleet of cars."

Enterprise ranks highest in customer satisfaction among rental car companies for a third consecutive year, receiving an overall index score of 789 -- a 21-point improvement from 2005. Enterprise performs particularly well in five of the six factors: costs and fees, pick-up process, return process, reservation process and shuttle bus/van. Enterprise is followed in the rankings by Hertz and National, respectively.

The study finds that only 29 percent of customers waited to pick up their rental car -- a 15 percentage-point improvement from 2005. However, the average time it takes to pick up the rental car is 21.5 minutes this year. This is an area the industry needs to address since overall satisfaction drops below the industry average with any wait time that exceeds five minutes.

"Once arriving at the airport, travelers are already in an impatient mood," said Gaz. "Having to wait more than what they feel is a reasonable amount of time to receive the rental car is not a good way to start their rental car experience. Considering that more than 21 percent of customers choose a rental car company based on a previous experience, the pick-up process plays a critical role in impacting customer satisfaction."

The study also finds the following key rental customer patterns: * Customers are increasingly renting full-size and sport utility vehicles. While the vast majority of vehicles rented are mid-size cars (42%) or compact cars (14%), the rental share of full-size cars has increased 5 percentage points to 12 percent, while sport utility vehicles has increased 3 percentage points to 11 percent. * The Internet continues as the method of choice when making reservations. Overall, 69 percent of customers reserve a vehicle online -- 42 percent at the rental car company Web site, 21 percent at an independent travel Web site, and 6 percent through a corporate self-booking site. Overall Satisfaction Index (Based on a 1,000-point scale) Enterprise 789 Hertz 780 National 775 Industry Average 767 Avis 766 Alamo 762 Budget 754 Thrifty 752 Dollar 746 Included in the study but not ranked due to small sample size are: Advantage Rent-A-Car and Payless.

The 2006 Rental Car Satisfaction Study is based on responses from 4,133 business and leisure travelers who rented a vehicle at an airport location between January and October 2006.

For consumer tips on choosing the right rental car company, visit the J.D. Power and Associates Consumer Center at www.jdpower.com.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 290 offices in 38 countries. Sales in 2005 were $6.0 billion. Additional information is available at http://www.mcgraw-hill.com/

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

Source: J.D. Power and Associates

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